Domino’s India could be shifting its business from delivery companies Zomato and Swiggy to in-house online delivery systems, after the Competition Commission of India sought responses from franchisees and a few other restaurants of Dominos India in its probe, Jubilant told the commission this month that 26-27% of its overall business in India is generated on online platforms, including its own mobile app and website.
After the CCI sought responses from Dominos Pizza India franchise and several other restaurants as part of its investigation, Jubilant FoodWorks sought more time to share data related to its online sales but wrote to the watchdog raising concerns about the potential higher commissions charged by the meal-ordering platforms. A Jubilant FoodWorks spokesman declined to comment, and the CCI did not respond immediately.
The allegations were made by Jubilant FoodWorks (JUBI.NS), which runs the Domino’s chain in India, as well as Dunkin Donuts India, in a confidential submission before the Competition Commission of India (CCI), which is investigating Zomato and Swiggy over their alleged anti-competitive practices. The CCI ordered an investigation of Zomato and Swiggy in April, following allegations from the Indian restaurant conglomerate that they have engaged in preferential treatment, excessive commissions, and various anti-competitive practices.
SoftBank-backed Swiggy said its commissions were determined based on factors like the restaurant’s popularity or volume of orders, according to an initial CCI order. Dominos Pizza franchises in India would consider taking some of their business from popular food delivery apps, Zomato and SoftBank-backed Swiggy, should the commissions from popular food delivery apps increase further, according to a letter seen by Reuters.
Dominos Pizza India franchise will consider taking some of its business away from popular food delivery apps, SoftBank-backed Zomato and Swiggy Zomato Swiggy, if its commissions rise further, according to a letter seen by Reuters. The move by the exuberant FoodWorks comes as Zomato and SoftBank-backed Swiggy are facing allegations by many Indian dining establishments that alleged practices of the popular food delivery apps are hurting their businesses.
Zomato, which is supported by the Chinese-based Ant Group, and Swiggy have not responded either. With increasing smartphone usage and compelling discounts on offer, meal delivery platforms are becoming more and more popular in India. Jubilant FoodWorks reported in February that the Dominos app had been installed 8.2 million times in the Q1-December 2021 period, with sales from its app itself continuing to increase at a higher rate than from the aggregators.